Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Sections 159J, 159L and 159P apply in relation to an indexing year of income as if each indexable amount were replaced by the amount calculated using the formula:
Previous indexable amount Indexation factor
where:
"Previous indexable amount" is the indexable amount concerned for the previous year of income.
"Indexation factor" is the indexation factor for the indexing year of income.
(2) Where, apart from this subsection, an amount calculated under subsection (1) would be an amount of dollars and cents:
(a) if the number of cents is less than 50--the amount shall be rounded down to the nearest whole dollar; and
(b) in any other case--the amount shall be rounded up to the nearest whole dollar.
(3) The indexation factor for an indexing year of income is the number (calculated to 3 decimal places) ascertained by dividing the sum of the index numbers for the quarters of the 12 month period ending on 31 March immediately before the indexing year of income by the sum of the index numbers for the quarters of the preceding 12 month period ending on 31 March.
(4) If the factor ascertained under subsection (3) in relation to an indexing year of income would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained under that subsection in relation to that indexing year of income shall be taken to be the factor calculated to 3 decimal places and increased by 0.001.
(5) Subject to subsection (6), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this section.
(6) If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to the index numbers published in terms of the new reference base.
(6A) If the indexation factor for an indexing year of income is less than 1.000, sections 159J and 159L apply in relation to the indexing year of income as if each indexable amount were the same as the previous indexable amount (as defined in subsection (1)). This subsection has effect despite subsection (1).
(7) In this section:
(a) an amount specified in subsection 159J(1B) or (2) (other than the amounts specified in column 3 of the table in subsection 159J(2) in respect of a dependant included in class 3 or 4); or
(b) the amounts specified in subsection 159L(2); or
(c) the amount specified in:
(i) paragraph 23AB(7A)(a); or
(ii) paragraph (d) of the definition of relevant rebate amount in subsection 79A(4); or
(iii) paragraph (d) of the definition of concessional rebate amount in subsection 79B(6) ; or
(d) an amount specified in paragraph 159P(3A)(b);
or, if any such amount has been altered under this section in relation to the 2008-09 year of income or a later year of income, the altered amount.
"indexation factor" means the indexation factor ascertained under subsection (3).
"indexing year of income" means the year of income commencing on 1 July 2008 or a later year of income.
"index number" , in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.